The global PVC market demand is weak, the price continues to fall

Global PVC market prices continued to stabilize this week, despite high energy costs in Europe, persistent inflation in Europe and the United States, increased housing costs, weak demand for PVC products and PVC, and ample supply of PVC in the Asian market, the price center is still facing a downward trend.

PVC prices in the Asian market continued to stabilize this week, and it is reported that due to increased competition with ocean-going cargoes from the United States, pre-sale prices in Asia may continue to fall in October.  The Chinese mainland market export price is stable in the lower, but it is still difficult to deal, the market prospect is worrying.  Due to the global weakness, PVC prices in the Indian market also showed little momentum. The price of PVC in the United States for the arrival of December is rumored to be at $930-940 / ton. Some merchants are also confident that the demand in India will recover after the monsoon.

The US market stalemate remained stable, but domestic prices continued to fall 5 cents/lb in September due to slowing housing activity and inflationary pressures.  The US PVC market is currently full of warehouses, deliveries to some areas are still constrained, and US customers are still bearish on the fourth quarter.

Despite the high energy cost in the European market, especially the record high electricity, the demand is weak and the inflation continues, the PVC price is facing the difficult situation of rising, and the production enterprises are affected by the profit compression.  The European drought has also caused a significant reduction in Rhine logistics transport capacity.  Nobian, a Dutch industrial chemicals maker, declared force majeure on Aug. 30, mainly due to equipment failures but also drought and feedstock supply constraints, saying it could not fulfill orders from downstream chlorine customers.  Demand is weak in Europe, but prices are not expected to change much in the short term due to costs and production cuts.  The impact of low import prices, Turkish market prices slightly lower.

As global capacity expansion continues, PT Standard Polymer, a Dongcho subsidiary, will expand the capacity of its PVC plant in Indonesia, which currently has a capacity of 93,000 tons, to 113,000 tons per year by February 2023.

Post time: Sep-02-2022